Wincanton plc, the largest British third-party logistics company, today announces it has signed a conditional agreement to dispose of the operations of its container business (“Containers”) to Maritime, a UK-based, intermodal logistics company.
The operations will be sold for a consideration of approximately £1.5m. Net liabilities of approximately £1.0m, primarily in respect of leased fleet, will transfer to the buyer. After fees and provision for costs of separation, the Group expects to report a small exceptional gain on disposal.
The disposal of Containers is aligned with the Group’s strategy of focusing on its core markets that offer the greatest potential for growth. Containers, which sits within Specialist Services in the Group’s new reporting structure, provides port to distribution centre container logistics services. The business is subject to a high-level of volatility in the daily demand for its services and the short-term nature of its contracts differs from Wincanton’s core business model, where visibility of earnings is prioritised. Containers is likely to require investment within the next two years and Wincanton is committed to directing investment towards higher value areas of the Group.
The transaction will reduce the Group’s annual revenue by approximately £60m and will lead to a small increase in the Group’s underlying profit before tax.
James Wroath, Chief Executive Officer of Wincanton, said:
“This transaction is an important step in our strategy to focus our efforts and resources on the exciting growth opportunities we see in our core markets. I would like to thank all our colleagues in the container business for their professionalism and service to our customers during Wincanton’s period of ownership and we wish them well for the future.”